The Trump administration is moving to replace import taxes the Supreme Court struck down in February, and a new round of tariffs could hit before summer ends.
The court ruled Feb. 20 that the president had overstepped his authority. He had used an emergency law to impose sweeping import taxes on nearly every country. The court held 6 to 3 that the law, the International Emergency Economic Powers Act, does not authorize the president to impose tariffs. Tariffs are a form of taxation. That power belongs to Congress.
Two days after the ruling, the administration imposed a 10% across-the-board tariff using a different law. That tariff expires July 24. The president cannot extend it unilaterally, and Congress has not acted to extend it.
Now the administration is working to put longer-lasting import taxes in place before the clock runs out.
What the investigations are about
The Office of the U.S. Trade Representative is holding hearings this week on two separate investigations. Both could produce new tariffs under Section 301 of the Trade Act of 1974.
The first investigation covers 60 trading partners, accounting for more than 99% of U.S. imports. It examines whether those countries do enough to stop trade in goods made with forced labor.
The second targets 16 countries and the European Union. It accuses foreign producers of flooding global markets with cheap goods and undercutting U.S. manufacturers.
Why Section 301 matters
Section 301 authorizes the government to impose tariffs on countries that engage in unfair trade practices. Unlike the temporary tariffs now in effect, Section 301 tariffs carry no size cap. They last four years and can be extended.
Section 301 tariffs also have a legal track record. The administration used them against China during Trump’s first term, and courts upheld them.
The administration intends to conclude both investigations before July 24. Some trade experts say the accelerated timeframe raises questions about fairness. The China tariff investigation in Trump’s first term took nearly a year.
What affected businesses should do now
If you import goods, higher tariffs are likely coming soon. Trade analysts advise locking in pricing and contracts now. Track your current import tax payments separately. The existing 10% tariff faces its own legal challenges, and refunds could follow if courts strike it down.
Small importers and e-commerce businesses already face a layered cost structure. The $800 de minimis exemption ended in August 2025. Every shipment now requires a formal customs entry and full duty payment regardless of value.
New Section 301 tariffs would stack on top of existing rates, and Section 301 carries no cap on how high those rates can go. Businesses that can move shipments before July 24 lock in the known 10% rate. After that, the rate is anyone’s guess.
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